Red-Flags-Rule

Frequently Asked Questions Regarding the Red Flags Rule

The Red Flags Rule is an Identity Theft Program that many businesses and organizations must adopt. This is a Federal Government regulation that is enforced by the Federal Trade Commission (FTC).

What types of businesses and organizations are covered by the Red Flags Rule?

The Rule applies to "financial institutions" and "creditors." Under the Rule, the definition of "creditor" is broad, and includes businesses or organizations that regularly provide goods or services first and allow customers to pay later. Examples of groups that may fall within this definition are utilities, health care providers, lawyers, accountants, and other professional companies.

Does the Red Flags Rule apply to Midstate Electric Cooperative, Inc.?

Yes. Utilities that regularly bill customers after they've received services fall within the statutory definitions of "creditor" and the Co-op is covered by the Rule.

So why do you need my identity to protect my identity?

This is probably the most frequently asked question. When working with customers over the phone or in person, we have to ensure the person we are helping is in fact you, the account holder, and not an imposter. In order to ensure no information about your account is given out to the wrong person, we need to ask you indentifying questions that only you would know the answer to.

What steps has Midstate taken to ensure my identity protection?

• All member information is locked and secured.
• Employees are given training on how to detect and prevent identity theft.
• Midstate uses the latest technology to protect information stored in our computer systems.

For more information regarding the government regulation, visit the FTC’s website.

Touchstone Energy® Cooperatives is a national network of electric cooperatives across 46 states that provides resources and leverages partnerships to help member cooperatives and their employees better engage and serve their members. By working together, Touchstone Energy cooperatives stand as a source of power and information to their 32 million member-owners every day.